Financial Review

Income Statutory Contracts Fundraising Expenditure

At Jigsaw, it’s vitally important to us to be open and honest about how we are funded and how we use those funds to support young people with their mental health.

If you want to learn more about our finances, you can access our full independently audited financial statements for 2017 here...

Income

€9,250,000

Total income in 2017 was €9.25m, which represents an increase on 2016 income (2016: €6.8m) of 36%. This increase relates mainly to funding from the HSE Service Level Agreement for local Jigsaw services, in line with the expansion of the Jigsaw network with three new services, and growth in fundraising income.

€6,628,875

In 2017 Jigsaw received €6,628,875 from the HSE Mental Health Directorate under a Service Level Agreement. This was to support the delivery of Jigsaw services through a growing network of 13 local services. This represents an increase on 2016 Service Level Agreement funding of 38% related to the increased number of local Jigsaw services, with the opening of services in Dublin City, Cork and Limerick in 2016.

Statutory Contracts
In 2017 Jigsaw received €6,628,875 from the HSE Mental Health Directorate under a Service Level Agreement. This was to support the delivery of Jigsaw services through a growing network of 13 local services. This represents an increase on 2016 Service Level Agreement funding of 38% related to the increased number of local Jigsaw services, with the opening of services in Dublin City, Cork and Limerick in 2016. In addition to this national Service Level Agreement the local HSE in Galway and Donegal provide additional resourcing to delivering Jigsaw in these communities. During 2017, the HSE in Galway transferred the operations of Jigsaw Galway to the national Jigsaw office. This involved a transfer of staffing to Jigsaw under a TUPE agreement and a Service Level Agreement between the HSE in Galway and Jigsaw. Under this Service Level Agreement the HSE in Galway paid Jigsaw €722,000 to contribute to Jigsaw Galway costs from March – December 2017. Prior to March 2017 the HSE Galway contribution to the costs of Jigsaw Galway in 2017 is valued at €97,277.

The HSE in Donegal contributes resources to Jigsaw Donegal through a local fiscal agent, the North West Alcohol Forum. The local contributions in Donegal are valued at €322,204.

The value of local contributions to Jigsaw Galway and Donegal are reflected in the Statement of Financial Activity as both income and expenditure.

Jigsaw was included in the Programme for Partnership Government published in May 2016: “Accessible and informal mental health services can play a vital role in connecting with young people. We will extend these services, such as Jigsaw, which is free to access and does not require GP referral, which are more informal and attractive to young people.”

The HSE Service Plan for 2017 also refers to Jigsaw:

“Mental health strategic priority 3 – Deliver timely, clinically effective and standardised safe mental health services in adherence to statutory requirements: embed existing 10 Jigsaw sites to full capacity and develop new sites in Cork, Dublin and Limerick.”

This significant support and endorsement of Jigsaw, as an accessible early intervention and prevention youth mental health service, in the Programme for Partnership Government and HSE Mental Health Service Plan and through funding from HSE Mental Health, and Primary Care at local and national levels, is highly valued and appreciated by Jigsaw. We continue to work with the HSE to secure sufficient finance to meet the costs to deliver the network of local services. Jigsaw is heavily dependent on the Service Level Agreement with the HSE for the continued delivery of its youth mental health services.

The friendly atmosphere is comfortable and easy-going, it almost feels like home. The support is amazing it’s a very communal place.

A quote from a young person who attended Jigsaw for support with their mental health

Fundraising

€716,145

Fundraising income is increasing, in line with a new fundraising strategy, the employment of a Head of Fundraising and Communications and related investment in fundraising resources. This has been a priority for Jigsaw to grow fundraising to replace income that previously came from philanthropy and funding from reserves to cover the day to day operations of activities related to research, engagement and services. In 2017 fundraising income amounted to €716,145 which is an increase of some 78% (2016: €411,738).

€765,902

The value of pro-bono support can vary year on year and impacts on the overall income and expenditure figures for comparing years. In 2017 pro-bono support of €765,902 was achieved, which is an increase of more than €660,000 on 2016 (2016: €101,071).

Pro-bono support
Jigsaw receives pro-bono support for services and for premises from a range of supports. Premises in a number of service locations are provide free or at a reduced rate and county councils and DIT support Jigsaw in this manner. The value of these premises is €72,714. Additionally, we receive pro-bono legal support from Arthur Cox valued in 2017 at €25,342.

Our auditor GBW, provides audit services on a low bono basis, contributing €5,486 in 2017.

In 2017 we secured through an IBM Grant Application, services to conduct an IT audit of our network infrastructure valued at €40,500. We also secured a free advertising campaign in national print media that is valued at €621,860.

The value of pro-bono support can vary year on year and impacts on the overall income and expenditure figures for comparing years. In 2017 pro-bono support of €765,902 was achieved, which is an increase of more than €660,000 on 2016 (2016: €101,071).

General fundraising
Fundraising income is increasing, in line with a new fundraising strategy, the employment of a Head of Fundraising and Communications and related investment in fundraising resources. This has been a priority for Jigsaw to grow fundraising to replace income that previously came from philanthropy and funding from reserves to cover the day to day operations of activities related to eesearch, engagement and services. In 2017 fundraising income amounted to €716,145 which is an increase of some 78% (2016: €411,738).

The 2017 return on investment in fundraising is 3:1 (excluding pro-bono income) and 6:1 (including pro-bono income).

Jigsaw is committed to continuing to develop our work in research, engagement and services. Ongoing and sustained growth in fundraising income is necessary to fund these elements of Jigsaw’s work.

At the end of every day – I’m proud to say I work for Jigsaw and that we’re making a difference. That matters to me.

A quote from a Jigsaw service staff member

Expenditure

€9,400,000

Overall expenditure in 2017 was €9.4m which represents an increase on 2016 expenditure (2016: €7.8m) of 21%. This increase relates mainly to increased costs for the delivery of Jigsaw services and increased expenditure on engagement, related to the free advertising campaign during 2017.

Jigsaw services delivery continues to be the main focus of Jigsaw’s work and related costs and represents 89% of the total costs in 2017. This is borne out by the increase in the number of staff employed for Jigsaw services with 108 staff employed at the end of 2017 (2016: 85). 2017 was the first full year of operation in newly established Jigsaw services in Dublin City, Cork and Limerick.

There is a significant increase on the expenditure for engagement in 2017 of €0.7m compared to 2016 €0.2m. This relates to a national advertising campaign that was free of charge in 2017.

Expenditure on research of some €83,000 is in line with expenditure in 2016. Expenditure on fundraising has increased from 2016 levels and relates to our increased investment in fundraising to enable Jigsaw to increase fundraising income.

Unrestricted funds expenditure
The total expenditure of unrestricted funds for all activities including Jigsaw services, research, engagement and cost of generating funds was €0.75m (2016:€0.84m) which exceed unrestricted income by €0.24m (2016: €0.54m). This was funded through unrestricted reserves.

Outline summary of fund movements
The net movement in fund for 2017 was a deficit of €176,195 (2016: €999,472), which is analysed by restricted/unrestricted in Note 21 in the accounts. The total Jigsaw services expenditure funded by the HSE Mental Health Directorate was €6.7m and this was fully met by a reserve coming into the year of €91,755 and income in 2017 of €6.6m.

Unrestricted funding
There was a deficit in the year of €235,183 (2016: €541,313) related to activities funded through unrestricted funding and this is due to annual expenditure that was higher than the unrestricted fundraising coming into the company.

The deficit in unrestricted funding will be met by increasing fundraising income to meet related expenditure levels on an annual basis.

Reserves
In accordance with recommended best practice, each charity should have a reserve policy.

The Board of Directors has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the working capital requirements are considered for both the HSE funded and non-HSE funded work of the company.

The unrestricted funds not committed or invested in tangible fixed assets held by the charity should be maintained at a level of 13 weeks of the non-HSE related projected expenditure to meet the working capital requirements of the charity.

The local Jigsaw service delivery is resourced through an annual Service Level Agreement with the HSE. Continued resourcing is required from the state in order to continue to deliver these services. The Directors have agreed to consider the total costs of Jigsaw (including the HSE resourcing of Jigsaw services) in their review of maintaining a prudent reserve. This is in order to provide for working capital requirements should there be a need for an orderly wind down of Jigsaw’s service delivery.

At the end of 2017 Jigsaw had designated reserves of €675,000 for the cost of non-HSE related programmes of Research, Engagement and Innovations and fundraising costs for a 12 month period. This is in line with Jigsaw’s policy. If the reserves fall below the level required by the policy, the Directors will consider what actions need to be taken.

The Directors consider that the level of unrestricted reserves is sufficient to cover an orderly wind down of Jigsaw services should the HSE Service Level Agreement contract not be renewed.

I felt as if I wasn’t being judged, that I could talk about what was concerning me without the fear that I would be ignored or have my trust broken.

A quote from a young person who attended Jigsaw for support with their mental health